RULES AND REGULATIONS
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA. CODE CH. 65]
[28 Pa.B. 804] [L-950110]
Water Service Executive Summary
The Pennsylvania Public Utility Commission (Commission) on July 31, 1997, adopted an order at its public meeting to promulgate final-form regulations regarding obsolete and excessive regulations regarding water service. The amendments will update and amend two sections.
In § 65.8(d)(2) (relating to meters), the Commission removed the requirement that water utilities test those meters which have been removed from service when being replaced with new meters utilizing remote reading devices. Since granting a temporary waiver of the out-testing requirement, the Pennsylvania Chapter of the National Association of Water Companies (PA-NAWC) has filed monthly reports showing almost no complaints regarding the accuracy of the meters with remote reading devices. This eliminates the need to test meters being removed from service.
The Commission amended § 65.16 (relating to systems of accounts), by requiring water utilities to switch their books to the National Association of Regulatory Utility Commissioners (NARUC) Uniform System of Accounts for Class A, B or C water utilities from the present system, which is antiquated and difficult for the lay person to interpret.
The contact persons are Susan D. Colwell, Assistant Counsel, Law Bureau (717) 783-3459, and Judith Koch Carlson, Fixed Utility Services, (717) 783-5392.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Commission submitted a copy of the final rulemaking, which was published as proposed at 26 Pa.B. 2211 (May 11, 1996), and served on April 30, 1996, to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House on Committee Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure for review and comment. In compliance with section 5(b.1) of the Regulatory Review Act, the Commission also provided IRRC and the Committees with copies of all comments received, as well as other documentation.
In preparing these final-form regulations, the Commission has considered all comments received from IRRC, the Committees and the public.
These final-form regulations were deemed approved by the House Committee on Consumer Affairs on October 30, 1997, and were approved on October 28, 1997, by the Senate Committee on Consumer Protection and Professional Licensure, and were approved by IRRC on November 6, 1997, in accordance with section 5(c) of the Regulatory Review Act.
Public Meeting held
July 31, 1997Commissioners Present: John M. Quain, Chairperson; Robert K. Bloom, Vice Chairperson; John Hanger; David W. Rolka; Nora Mead Brownell
Final-Form Rulemaking Order By the Commission:
This rulemaking began with our Order entered May 23, 1995, when we issued an advance notice of proposed rulemaking to review and rescind all obsolete and excessive rules and regulations at Docket No. L-00950103. The advance notice was published on June 3, 1995 at 25 Pa.B. 2188, and a 60-day comment period was set.
After receiving comments from the Office of Consumer Advocate and internal input which reflected the need to update two sections contained in Chapter 65, we issued a Proposed Rulemaking Order at the above docket on December 27, 1995, in which we set forth proposed changes for both sections. We proposed these changes to clarify, simplify and remove excessive and burdensome requirements from our water service regulations.
We proposed changes to two sections. In § 65.8(d)(2), we proposed to eliminate the necessity to test meters which have been removed from service when replaced by new meters utilizing remote reading devices. In § 65.16, we proposed changing to the NARUC Uniform System of Accounts for Water Utilities for greater consistency.
Comments on the proposals were filed by the PA-NAWC, the Office of Consumer Advocate and IRRC.
The idea for revision of § 65.8(d)(2) is not a new one. By petition docketed at P-00890380, ten jurisdictional water companies,1 under the auspices of the PA-NAWC sought waiver of the provision as it applies to meters permanently removed from service and replaced by new meters utilizing remote reading devices. At that time, petitioners alleged that the cost of testing was $101.15 for every $1 refunded to ratepayers as a result of fast-meter overcharges. We were unwilling to grant a permanent waiver at that time, and instead granted a temporary waiver to develop a record of empirical data.
The NAWC has filed monthly reports since that time, and the numbers fully support the permanent change which we enacted here. Since 1990, records reveal 15 fast reads for 298,842 meters, or 0.005%. Monthly records submitted for the last 2 years reveal that none of the replaced meters resulted in a complaint regarding fast running meters. Clearly, this data supports removing the requirement that the meters being taken out of service for upgrade to remote capability be tested for accuracy.
The PA-NAWC supports the change in § 65.8(d)(2) since the result will be that far fewer meters will need to be out-tested, generating cost savings or operating efficiencies, or both. ''PA-NAWC applauds the efforts of the Commission to streamline this regulation.'' Comments of PA-NAWC, p. 2. Further, ''[ T ]he OCA concurs in the comments of PA-NAWC in that this appears to be a desirable change in the regulations.'' Comments of OCA, p. 1.
IRRC suggests that we take this approach one step further and amend the regulation to provide that only those meters that are removed and will be reused be tested for accuracy. We decline to take that step at this time. We believe that the high levels of reading efficiency and customer convenience of the new meters justifies the change we are making; however, we are continuing the express purpose of upgrading to remote-read units. Except where changed-out for the purpose of system up-grades to remote metering, older meters should be tested so that their results will be available for those customers who believe that their bills reflect a fast meter.
The changes to § 65.16 require that water utilities keep their books of account in conformity with the Uniform System of Accounts for Class A, B or C water utilities as prescribed by the NARUC. ''PA-NAWC acknowledges the long-term benefits and improvements made available by this change but cautions that the Commission must consider the complexity of this change on those utilities and allow appropriate time for implementation of this requirement. These considerations must include impacts on year-to-year analysis, needed financial information system conversions and impacts on corporate consolidations. As such, the PA-NAWC recommends that the Commission provide water utilities with significant flexibility in the time table within which this change must be implemented.'' PA-NAWC Comments, p.2. PA-NAWC recommends that the utilities be given until January 1, 2000 to effect the necessary changes in their accounting systems. The OCA does not object to this recommendation.
IRRC suggests that the implementation period be 3 years from the adoption of these amendments because small water companies with limited financial resources and experience may need more time to convert all of their accounts to this new system. Since the industry has indicated that the change-over can be accomplished by January 1, 2000, we have decided to set that date as the deadline. Although companies may make the necessary conversion prior to that date, all conversions must be completed by January 1, 2000.
In adopting these changes, we are eliminating a section to expedite the conversion to remote metering, and we are modifying another to eliminate an antiquated system of accounts and replace it with a modern one. This will result in a more useful format for annual reports as well. We thank the PA-NAWC and OCA for their helpful comments. We are confident that our duty to ensure the reasonableness and reliability of utility service is well-served by the changes which we adopt today.
Accordingly, under sections 501, 504, 505, 506, 1301 and 1501 of the Public Utility Code, 66 Pa.C.S. §§ 501, 504, 505, 506, 1301 and 1501, and the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder, we adopt those changes to read as set forth in Annex A as described in the body of this order. Therefore,
It Is Ordered that:
1. The Commission's regulations, 52 Pa. Code Chapter 65, are amended by amending §§ 65.8 and 65.16 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
2. The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to legality.
3. The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.
4. The Secretary shall submit this order and Annex A for formal review by the designated standing committees of both houses of the General Assembly, and for formal review and approval by IRRC.
5. The Secretary shall deposit this order and Annex A with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin, effective upon publication.
6. A copy of this order shall be served upon all persons who submitted comments in this rulemaking proceeding.
JAMES J. MCNULTY,
SecretaryFiscal Note: Fiscal Note 57-169 remains valid for the final adoption of the subject regulations.
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 27 Pa.B. 6128 (November 22, 1997).)
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED UTILITIES
CHAPTER 65. WATER SERVICE § 65.8. Meters.
* * * * * (d) Installation and removal of meters.
* * * * * (2) Removal of meters. A water meter which is removed from service shall be tested within 30 days for accuracy to complete that meter's test history. When a meter is removed from service, it shall be properly sealed to secure registers and measuring devices until it can be properly tested for accuracy. Meters permanently removed from service and replaced by new meters utilizing remote reading devices are exempt from this provision.
* * * * * § 65.16. System of accounts.
(a) A public utility having annual operating revenue of $750,000 or more (average of the last 3 consecutive years) shall keep its accounts in conformity with the most recent Uniform System of Accounts for Class A Water Utilities prescribed by the National Association of Regulatory Utility Commissioners (N.A.R.U.C.).
(b) A public utility having annual operating revenues of $150,000 or more but less than $750,000 (average of the last 3 consecutive years) shall keep its accounts in conformity with the Uniform System of Accounts for Class B Water Utilities prescribed by N.A.R.U.C.
(c) A public utility having annual operating revenues of less than $150,000 (average of the last 3 consecutive years) shall keep its accounts in conformity with the most recent Uniform System of Accounts for Class C Water Companies prescribed by N.A.R.U.C.
(d) Public utilities subject to this section shall have until January 1, 2000, to convert to the most recent Uniform System of Accounts for Class A, Class B or Class C Water Utilities prescribed by N.A.R.U.C.
* * * * * 1Bloomsburg Water Co., Dallas Water Co., Dauphin Consolidated Water Supply Co., Mechanicsburg Water Co., Pennsylvania- American Water Co., Pennsylvania Gas and Water Co., Philadelphia Suburban Water Co., Shavertown Water Co., Wrightsville Water Supply Co., and York Water Co.
[Pa.B. Doc. No. 98-253. Filed for public inspection February 13, 1998, 9:00 a.m.]
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